Kiama Municipal Council has developed a new Investment Policy which it says has a strong focus on ethical and environmental investments.
In a statement, the Council said the draft Investment Policy stipulates Council gives preference to Socially Responsible Investments (SRIs).
Council’s criteria for an SRI are those which direct investment towards socially and environmentally productive activities such as:
- resource efficiency
- renewable energy
- waste and emissions reduction
- human health and aged care
- equal opportunity employers
- provision of affordable housing
The new Policy also requires Council to avoid investing in:
- production of pollutants, toxins and greenhouse gases
- habitat destruction
- nuclear power
- uranium mining
- production or supply of armaments
- alcohol, tobacco or gambling products
Council says another important feature of the draft Investment Policy is the prohibition on speculative financial products, including derivative-based instruments.
Any investment still needs to meet diversification, market, liquidity and maturity risk guidelines, it said.
The draft Investment Policy is on public exhibition until 5pm, Monday 5 February.